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Politics

Govt allocates billions for salary, pension of public servants

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The government has allocated Rs. 110 billion for the second phase of the 2025 salary revisions, with payments to all public servants set to commence from January 2026. In addition, Rs. 20,000 million has been earmarked for the second phase of pension revisions.

Agrahara Insurance contributions for public servants are also set to increase, with the minimum contribution raised by Rs. 75, while Rs. 300 and Rs. 600 contributions will go up by Rs. 150.

The festive advance for government employees will rise to Rs. 15,000, up from the current Rs. 10,000. Meanwhile, the distress loan limit has been increased from Rs. 250,000 to Rs. 400,000 at an interest rate of 4.2 percent, with Rs. 10,000 million allocated for disbursement.

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